Discussion
I have always had a company car, but, I also understand that I could take an allowance instead?
I'd like to approach the other directors regarding this, but I'd like to know the facts, and pros and cons before I do so.
My current situation is this, I have a deposit on a Focus RS, but the BIK would be around £140 per week
If I do stick with a company car, I'd get a 330e BMW, which would £40 per week!
I'd like to approach the other directors regarding this, but I'd like to know the facts, and pros and cons before I do so.
My current situation is this, I have a deposit on a Focus RS, but the BIK would be around £140 per week
If I do stick with a company car, I'd get a 330e BMW, which would £40 per week!
It was actually 2010 when I last did the Beamers, so 6 years ago. We always did contract hire so they never showed up as assets as you never owned them.
The advantage in those days was that payments were allowable for tax relief and it was the only way we knew of to claim back 50% of the Vat element.
Times may have changed.
The advantage in those days was that payments were allowable for tax relief and it was the only way we knew of to claim back 50% of the Vat element.
Times may have changed.
Unless you do a serious amount of private mileage and value having a new car, I never manage to get a company car to work out in favour
For the last 18 years ive had car allowance plus fuel paid, and used the allowance to buy my own cars, a few years old
You get to drive twice the car for your money and own something when its paid for, you can sell or run for a few more years whilst pocketing the cash
If you get your personal fuel paid then you can also choose to drive big V8 petrols too
As always with this cash versus car thing, you have to do the math for your circumstances....
try www.comcar.co.uk for comparison tool
For the last 18 years ive had car allowance plus fuel paid, and used the allowance to buy my own cars, a few years old
You get to drive twice the car for your money and own something when its paid for, you can sell or run for a few more years whilst pocketing the cash
If you get your personal fuel paid then you can also choose to drive big V8 petrols too
As always with this cash versus car thing, you have to do the math for your circumstances....
try www.comcar.co.uk for comparison tool
bogie said:
If you get your personal fuel paid then you can also choose to drive big V8 petrols too
It's not like you get the fuel free - it's a taxable benefit so the value of it is effectively added to your salary.On Focus RS the OP would be paying about £55/wk in tax on private fuel. That's only a tankful a week - easily done in a Focus RS, I'd imagine. And if he wears the front tyres out every 3 months he gets those free too.
Sheepshanks said:
bogie said:
If you get your personal fuel paid then you can also choose to drive big V8 petrols too
It's not like you get the fuel free - it's a taxable benefit so the value of it is effectively added to your salary.On Focus RS the OP would be paying about £55/wk in tax on private fuel. That's only a tankful a week - easily done in a Focus RS, I'd imagine. And if he wears the front tyres out every 3 months he gets those free too.
With a company car you pay fuel tax based on Co2 , so you can minimise it if you buy something small and diesel
You can also claim back you business mileage at 45p for the first 10K and 25p thereafter
I did have a co car with maintenance once, and used to do trackdays. After the first couple of sets of tyres were gone in a few thousands miles they forced me to get a minimum of 5k miles out of a set....so there are some small benefits to a company car with maintenance
bogie said:
Yes, I know, you pay the tax on it...still cheap
It could be far cheaper to have it included with your company car and just pay the BIK - it's "all you can use" then. If you're office based then it would take much a commute to break even and some of guys were doing hefty private mileages.bogie said:
With a company car you pay fuel tax based on Co2 , so you can minimise it if you buy something small and diesel
Oh joy. Anyway OP really wants a Focus RS.Jockman said:
PurpleMoonlight said:
No you can t.
The 45p is for use of your own vehicle.
Correct. The only claim on a company car is if you pay for the fuel for business miles. Even then it can be as low as 8p and gets reviewed every 3 months. The 45p is for use of your own vehicle.
PurpleMoonlight said:
bogie said:
With a company car you pay fuel tax based on Co2 , so you can minimise it if you buy something small and diesel
You can also claim back you business mileage at 45p for the first 10K and 25p thereafter
No you can't.You can also claim back you business mileage at 45p for the first 10K and 25p thereafter
The 45p is for use of your own vehicle.
I guess the key question is what is the value of the cash alternative, and the split of business to personal. You are going to get paid for business miles either way, and few people do 30k business miles then another 20K personal mileage, so any personal fuel benefit is not usually huge in cash value, more a perceived benefit.
The OP should go on www.comcar.co.uk and get the BIK figures which obviously are more for a 40% tax payer
It all depends on cash alternative. £500 a month cash and it might be a borderline decision £850 a month cash allowance, and Id take the cash instead
Edited by bogie on Saturday 16th April 11:23
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